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Kiwifruit winner in TPP Agreement

4 February 2016

Kiwifruit winner in TPP Agreement


The Trans-Pacific Partnership (TPP) Agreement will generate significant value for the New Zealand kiwifruit industry and Zespri welcomes the signing of the Agreement today in Auckland.

Zespri Chief Executive Lain Jager explains the TPP will eliminate tariffs on kiwifruit exports into all 12 Asia-Pacific nations when it comes into force, with the biggest impact to be seen in Japan.

In 2014, the industry paid over $15 million in tariffs into Japan which is Zespri’s largest country market.

“Kiwifruit growers would save over $1000 for every hectare of kiwifruit grown in New Zealand, if this tariff relief was passed straight through to New Zealand growers. This tariff elimination will also benefit Japanese consumers by supporting our competitiveness against other fruit in Japan,” says Mr Jager.

Annual sales volumes to Japan are expected to increase around 10 percent over the next five years.

The other countries in the agreement – Brunei, Chile, Singapore, USA, Australia, Peru, Vietnam, Malaysia, Mexico, Canada – either do not have tariffs on kiwifruit, have existing free trade agreements with NZ or do not currently import NZ kiwifruit.

“This is an excellent result for our industry, which is set to earn nearly $2 billion in sales revenue this season and growing strongly. The reality is that New Zealand is a small nation reliant on exporting to earn our way in the world and these agreements are vital to our future prosperity.

“We congratulate the government on successfully concluding this important trade agreement and acknowledge the commitment of MFAT and MPI trade officials, along with former Trade Minister Tim Groser and Prime Minister John Key,” says Mr Jager.

ENDS

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